Underinsurance a problem in Canada, too

TD vice president DaveMinor recommends parents consider the following expenses as they crunch the numbers to calculate how much coverage they need:

• Current debts: Purchasing enough life insurance to cover the mortgage and other personal debts can ensure important assets, like the family home, are retained.
• Final expenses and taxes: Consider funeral expenses plus any tax that may be owed following one’s death, such as capital gains tax or inheritance tax. One’s insurance should cover these expenses without having to sell any important assets.
• Child care and education costs: A four-year post-secondary degree away from home can cost as much as a small house, so it is important you consider this cost. Young children and a stay-at-home spouse should also factor in to childcare expenses.
• Ongoing income for your family: Determine how much you wish to provide for your family in your absence to help them maintain their current lifestyle. Even smaller costs, such as sports activities can add up quickly.